The Common Misconceptions of Homeowners Insurance: What about my gems and jewels?

The Common Misconceptions of Homeowners Insurance: What about my gems and jewels?

April 24, 2023

Debunking the common misconceptions about Gems, Jewels, and Homeowners Insurance

´╗┐There are lots of misconceptions about homeowners insurance and how it covers your jewelry! We're here to debunk some myths!

As a jewelry enthusiast, you know that your collection is not only valuable in terms of sentimental value but also financially. You've taken the necessary steps to protect your precious pieces by purchasing homeowners insurance, but are you sure you have the right coverage? It's important to take a look at the common misconceptions surrounding homeowners insurance and how it covers your jewelry and gems.

     1. Homeowners insurance often has limits on coverage for high-value gems and jewelry collections.

One of the biggest misconceptions about insuring gems and jewels is that all jewelry is covered under homeowners insurance. While it's true that most standard homeowners insurance policies include some coverage for personal property, including jewelry, there are often limits on the amount covered for specific items like jewelry. These limits are usually set at a certain dollar amount, such as $1,000 or $2,500, and may not provide adequate coverage for high-value gems or jewelry collections.

    2. The cost of my jewelry is covered without any additional endorsements or riders to my insurance. 

Even if your homeowners insurance policy provides coverage for jewelry, it's important to understand that the full value of your pieces may not be covered. Most policies have sub-limits for different types of personal property, including jewelry, which means that only a percentage of the total value of your jewelry will be covered. For example, if your policy has a sub-limit of 50% for jewelry, and you have a collection worth $20,000, you may only be covered for up to $10,000, regardless of the total value.

Homeowners may assume that their standard homeowners insurance policy provides sufficient coverage for their jewelry, and they don't need to purchase additional coverage. However, given the limitations and sub-limits of most homeowners insurance policies, it's crucial to assess whether your jewelry is adequately covered. If you have high-value gems or a substantial jewelry collection, it's wise to consider purchasing a separate jewelry insurance policy or adding a rider or endorsement to your homeowners insurance policy to provide additional coverage specifically tailored for your jewelry.

    3. Insurance covers my jewelry even when I'm travelling abroad or am away from my home.

A common misconception is that homeowners insurance covers jewelry no matter where it is located. While it's true that homeowners insurance typically provides coverage for personal property, including jewelry, within the home, coverage may be limited or excluded when the jewelry is taken outside of the home. This means that if you wear your engagement ring or other valuable jewelry outside of your home and it gets lost, stolen, or damaged, your homeowners insurance may not cover the full cost of replacement.

     4. The insurance company doesn't need to appraise my gems, because I had a private appraisal already.

Many homeowners rely on jewelry appraisals to determine the value of their pieces and assume that the appraised value will be fully covered by their homeowners insurance. However, this is not always the case. Insurance companies may have their own methods for determining the value of jewelry, and they may not always agree with the appraised value. Additionally, appraisals may need to be updated regularly to reflect changes in the market value of jewelry, and failing to do so may result in inadequate coverage.

It's important to be aware of the common misconceptions about the amount covered by homeowners insurance on jewelry located within the home and high-value gems. Not all jewelry may be fully covered under standard homeowners insurance policies, and there may be limitations and sub-limits that could leave you underinsured. To protect your precious jewelry collection, consider reviewing your homeowners insurance policy, getting updated appraisals, and exploring additional coverage options such as separate jewelry insurance or endorsements to ensure that your jewelry is adequately protected.